The sale of nonperforming home mortgages held by portfolio lenders could double, or even triple next year, according to DebtX CEO Kingsley Greenland.
"Right now, this market is in the tens of billions," Greenland said in an interview with National Mortgage News.
The Boston-based company sells nonperforming residential and commercial loans for depositories and mortgage firms, as well as the Federal Deposit Insurance Corp.
In the residential space, its specialty is unloading NPLs that are held on the balance sheet of banks. "These are loans that have not been securitized," he noted. "They're held in portfolio."
The DebtX chief said one chief reason lenders will unload NPLs next year is to clean up their balance sheet for future acquisitions.
Commenting on the NPL market, he noted that the 'bid/ask' price has improved over the past few months. "We're seeing more product coming on the market," he said.